Modeling Flexible Supplier Selection Framework

Abstract

Due to highly competitive market environment, the supply chain network of business organization are not only efficient but also flexible. The flexible supply chain of business organization is greatly influenced by the suppliers. Hence, the selection of suppliers has to be flexible which not only take into account the quantitative factors but also take into account qualitative factors. In this paper, a novel attempt is conceptualized to model a flexible supplier selection (FSS) problem by integrating the qualitative and quantitative models for supplier selection problem. A MINLP, a quantitative model, is considered in the proposed FSS framework where factors such as lead time, quality, supplier’s capacity and transportation cost are considered. Similarly, in qualitative model factors such as loyalty, technology adaptability, CSR and environmental factors are considered. AHP and IRP, qualitative models, have been applied and compared for supplier’s ranking. An integrated ranking of AHP and IRP is used for modeling FSS problem. Finally, Integration of quantitative and qualitative model provides the set of deviation which measure the level of flexibility from pure solution of supplier selection problem by quantitative and qualitative model. The methodology of FSS problem is presented and demonstrated through an illustrative example of multi-product, multi-source and multi-period case.